High-performance carbon fiber for commercial aerospace enters a new cycle with rising volume and prices, Zhongfu Shenying up over 10%

On March 11th, in the afternoon, the concept of carbon fiber experienced a surge, with Zhongfu Shenying (688295.SH) rising over 10%, and Jilin Chemical Fiber (000420.SZ), Jilin Carbon Valley (920077.BJ), Guangwei Refractory Materials (300699.SZ), and Zhongjian Technology (300777.SZ) hitting new highs.

In terms of news, on March 11th, China’s independently developed T1200-grade ultra-high-strength carbon fiber will be launched globally for the first time. This breakthrough fills a gap in the global field and marks a significant leap forward for China in the production of ultra-high-strength carbon fibers.

Zhongtai Securities stated that a new cycle of volume and price increases is emerging for high-performance carbon fibers used in commercial aerospace. Lightweighting is key to cost competitiveness in commercial spaceflight, and carbon fiber composites have become a strategic necessity. Commercial aerospace has entered a critical window for scaled development. Under international rules favoring “first-come, first-served” for low Earth orbit satellites, frequency spectrum resources have become scarce strategic assets. China has applied to the ITU for a mega-constellation plan of over 200,000 satellites, with a clear and rigid timeline and task scale for industry chain development. The essence of the commercial aerospace competition is a contest of cost and efficiency, with material lightweighting being a crucial factor. It is estimated that reducing a satellite’s weight by 1kg can indirectly save 500kg of fuel in the launch system and cut launch costs by approximately $20,000. Thanks to its low density, high specific strength, high specific modulus, and dimensional stability, carbon fiber composites have become the mainstream structural material for spacecraft. The main grades of aerospace-grade carbon fibers include the MJ series for satellites and T700S, T800S for rockets.